I was raised in the south so Yoohoo and Squirt were found in every gas station and store cooler when I was a kid. The other brands they own that I love are 7 Up, A&W, Sunkist sodas, Hawaiian Punch and now that I've grownup ( my Mom and wife would say I haven't grown up just gotten older ) I love Mr & Mrs T's Mixers.
The new marketing strategy is to play up to the new health concerns and tell you how their drinks contain added vitamins and are made from real fruits and vegetables --- all these years I didn't know how healthy Yoohoo was!
Wall Street predicts good things for the stock and has published 8 buy and 4 hold recommendations. Although sales are only predicted to go up 3.20% this year and 3.30% next year they estimate stellar earnings projections. An increase in EPS of 22.30% this year, 13.70% next year and a compounded 5 year EPS growth rate of 7.85% are forecasted.
The technical signs are present too with a 8.92% price appreciation in the last 30 days, The stock hit 7 new highs in the last 20 trading session and 5 for 5 last week. Barchart's technical indicators have 12 of 13 buy signals for an 88% buy score. The stock trades around 37.91 with a 50 day moving average of 34.91.
Investor sentiment as measured by votes on Motley Fool shows CAPS members vote 322 to 22 that the stock will beat the market and the more savvy All Stars agree 133 to 10. Of the last 9 articles published on DPS 8 were positive.
This stock warrants a look because it:
- Has great brand recognition
- Had recently price momentum wiht an 88% Barchart technical buy score
- Positive investor sentiment
- Wall Street buy recommendations with solid growth in earnings
Jim Van Meerten is an investor who writes about investing on Financial Tides and Barchart. Please leave a comment below or email JimVanMeerten@gmail.com
Disclosure: No position in DPS at the time of publication
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